In a significant step towards bolstering its petrochemical industry and driving a green economic transformation, Egypt has signed a suite of crucial contracts for the initial design phase of the ambitious Red Sea Petrochemicals Complex. The signing ceremony, held on Thursday and attended by Prime Minister Mostafa Madbouli, marks a pivotal moment for the multi-billion-dollar project located in the Suez Canal Economic Zone (SCZone), a mere 10 kilometers from Ain Sokhna Port.

The agreements were formalized between the Red Sea National Petrochemicals Company and a prominent Egyptian Chinese joint venture comprising China National Chemical Engineering Co. Ltd. (CNCEC), the Egyptian General Petroleum Corporation's engineering arm ENPPI, and leading Egyptian petroleum construction company Petrojet. These contracts entrust the joint venture with the responsibility of executing the fundamental design works for the first phase of this landmark project.

According to a statement released by the Ministry of Petroleum and Mineral Resources, finalizing the basic design will provide a more precise and reliable estimation of the project’s total cost. This accurate cost assessment is an indispensable prerequisite for achieving financial closure, paving the way for the commencement of construction activities in 2026. The Ministry further anticipates that commercial operations at the Red Sea Petrochemicals Complex will begin shortly thereafter.

The groundwork for this ambitious undertaking has been laid through the allocation of a substantial 5-million-square-meter site within the SCZone and the establishment of essential basic infrastructure. Furthermore, crucial crude oil supply agreements have already been secured with the Egyptian General Petroleum Company (EGPC) and the Saudi Arabian oil giant, Aramco. Complementary logistics agreements have also been forged with the Arab Petroleum Pipelines Company (SUMED) and Sonker Bunkering Company (Sonker) for the efficient handling of products, alongside the establishment of both domestic and international distribution networks.

The Red Sea Petrochemicals Complex is envisioned as a state-of-the-art facility incorporating an advanced oil refinery and cutting-edge steam cracking units. This integrated approach will enable the production of a diverse range of high-value petrochemical products, with an initial focus on key building blocks like ethylene and propylene. These materials serve as essential inputs for numerous downstream industries, promising to stimulate local manufacturing and reduce Egypt's reliance on imports.

Prime Minister Madbouli emphasized the importance of this project, highlighting its role in localizing industries, enhancing the value-added contribution of the petrochemical sector to the national economy, and generating significant employment opportunities. By demonstrating tangible progress through the completion of the design phase, the initiative aims to significantly boost the confidence of both local and international investors and financial institutions. This increased confidence is crucial for securing the necessary funding for the subsequent implementation phases of the complex.